2016 Corporate Social Responsibility Report - …

1 2016 Corporate Social ResponsibilityReport1 scotiabank Corporate Social Responsibility Report 2016 DigitalTransformationCustomerFocusBusine ss MixAlignmentStrong Risk CultureWe believe every customer has the right to become better offLeadership& EmployeeEngagementStructuralCostTransfor mationShift to become more CUSTOMER-FOCUSEDand PERFORMANCE-ORIENTEDWhyWe Bank:Culture:About ScotiabankThe Bank of Nova Scotia ( scotiabank ) is Canada s international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. We are dedicated to helping our 23 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, Corporate and investment banking, and capital markets.

2 With a team of more than 88,000 employees and assets of CAD$896 billion (as of October 31, 2016 ), scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Our Strategic AgendaScotiabank s Strategic Agenda was shaped over the past two years and includes five highly integrated components: Customer Focus: Our unwavering commitment to being a customer-focused organization is reflected in our new Why We Bank platform, an expression of our renewed purpose: We believe every customer has the right to become better off. Leadership & Employee Engagement: We have enhanced the depth, diversity and deployment of our leadership teams to be more reflective of our customer and employee populations Structural Cost Transformation: Becoming more efficient while continuing to improve our customers experience and embracing change as a strategic advantage for the Bank Driving a Digital Transformation: Investing in our digital capabilities to improve outcomes for our customers, employees and ultimately for our shareholders Business Mix Alignment.

3 Enhancing profitability, ensuring that financial resources are well-deployed and well-aligned with our Strategic AgendaAbout ScotiabankCSR at ScotiabankUpholding Strong Governance Advancing Our Employees Fostering Strong Communities Serving Our Customers Reducing Our Impact on the EnvironmentIntroduction2 scotiabank Corporate Social Responsibility Report 2016 scotiabank s annual Corporate Social Responsibility Report (CSR) showcases our performance and achievements related to Environmental, Social and Governance (ESG) factors and outlines how scotiabank engages with its stakeholders. As we engage in ongoing and open dialogue with our key stakeholders, our communications approach continues to evolve. This year s CSR Report focuses on core themes that scotiabank and its stakeholders believe to be of greatest importance to the Bank.

4 It provides highlights of our progress in 2016 on our commitments and priorities. scotiabank has been using the Global Reporting Initiative (GRI) framework for CSR reporting since 2005. scotiabank s 2016 CSR Report is written in accordance with GRI s G4 framework and fulfills the requirements of a Core reaffirms its support of the Ten Principles of the UnitedNations Global Compact in the areas of human rights, labour, environment and anti-corruption. Through our annual CSR Report , we share our Communication on Progress, in which we describe our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations. Fundamental to this commitment is our new global Human Rights of ReportingThe scope of our reporting for this CSR Report and associated GRI Index includes information from November 1, 2015, through October 31, 2016 , for scotiabank and its fully owned or major operating subsidiaries.

5 The Report provides an overview of our framework, priorities and select initiatives for our fiscal year 2016 . See how we create value for our customers, our bank, and the world around ChangeReports and dataLinks and resourcesNewsThrough our five strategic CSR commitments, we aim to address the priorities that are most important to the success of our customers, our business, and the communities in which we commitmentsFeatured storiesCUSTOMERSCOMMUNITYENVIRONMENTGOVE RNANCEEMPLOYEESC entral Canada student teams honoredLorem ipsum dolor sit ametQuis nostrud exerci tation ullamcorperDuis autem vel eum iriure dolordolor in hendrerit in vulputate2016 CSR ReportLorem ipsum dolor sit ametQuis nostrud exerci tation ullamcorperDuis autem vel eum iriure dolordolor in hendrerit in vulputateLorem ipsum dolor sit ametQuis nostrud exerci tation ullamcorperDuis autem vel eum iriure dolordolor in hendrerit in vulputateDiversity andInclusionInvesting in Young PeopleFinancial Knowledge Read more about our CSR strategyStory title lorem ipsumLorem ipsum dolor sit amet, consectetur adipiscing elit.

6 Aenean impact storyRead impact storyStory title lorem ipsumLorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean title lorem ipsumLorem ipsum dolor sit amet, consectetur adipiscing elit. Aenean the videoWatch the videoOur priorities20 16 Cor po rate So cial ResponsibilityDownload our 2016 CSR Report "Debitis aut rerum necessitatibus saepe eveniet ut et voluptates repudiandae sint et molestiae non recusandae. Itaque earum rerum hic tenetur a sapiente delectus"Responsible FinancingMaintaining Trust Access to FinanceBetter Future, Better OffMessage from our CEOFPOFPOFPOFPOFPOFPOFPOC orporate Social ResponsibilityHow we are creating value for both society and ScotiabankPublic Accountability Statement2016 MANAGEMENT PROXY CIRCULAR Building an even better bank ANNUAL MEETING OF SHAREHOLDERS APRIL 12, 2016 YOUR VOTE IS IMPORTANT Please take some time to read this management proxy circular for important information about the business of the meeting and to learn more about scotiabank .

7 Global Reporting Initiative2016 About This Report2016 Global Reporting Initiative (GRI) IndexPublic Accountability Statement (Canada)United Nations Global Compact Report on Progress (Appendix A of this Report ) 2016 Annual ReportNew CSR Website2016 Management ProxyWe have developed, or refer to, companion pieces to the CSR Report , including: New this yearCSR at ScotiabankUpholding Strong Governance Advancing Our Employees Fostering Strong Communities Serving Our Customers Reducing Our Impact on the EnvironmentIntroduction3 scotiabank Corporate Social Responsibility Report 2016 Table of Contents04 Introduction04 President and CEO Letter05 Chairman Letter06 CSR at Scotiabank06 Adapting to the Changing World07 Creating Value with CSR in 201608 Our CSR Strategy.

8 Better Future, Better Off09 Key Performance Indicators (KPIs)10 Stakeholder Engagement and Materiality12 Our Priorities13 CSR Governance 14 Awards and Recognition15 Upholding Strong Governance15 Our Governance Structure15 Policies for Controls and Compliance 16 Operating with Integrity 16 Managing Risk17 Protecting Privacy and Ensuring Information Security 17 Managing Our Supply Chain18 Upholding Human Rights 19 Serving Our Customers19 Customer Focus20 Enabling Access to Financial Services23 Promoting Financial Knowledge 25 Advancing Our Employees25 Promoting Diversity and Inclusion27 Fostering Employee Engagement 28 Helping People Reach Their Potential 29 Fostering Strong Communities29 Support for Community Organizations30 Investing in Young People33 Foundational Support 34

9 Reducing Our Impact on the Environment 34 A Unified Approach to Environmental Management 35 Addressing Climate Change36 Responsible Financing 39 AppendixCSR at ScotiabankUpholding Strong Governance Advancing Our Employees Fostering Strong Communities Serving Our Customers Reducing Our Impact on the EnvironmentIntroduction4 scotiabank Corporate Social Responsibility Report 2016I am pleased to introduce scotiabank s 2016 Corporate Social Responsibility Report . scotiabank has a long history of investing in the communities in which we live and work. As we enter our 185th year in 2017, we are proud to Report that our commitment to giving back remains strong. The projects and initiatives you will find in this document are grounded in Scotiabankers belief that our customers have the right to become better off.

10 In 2016 alone, scotiabank employees dedicated more than 400,000 hours of volunteering and fundraising time to local causes. These hours were in addition to Bank contributions in excess of CAD$70 million in donations, sponsorships and other forms of assistance globally. Our new community investment strategy, launched in 2016 , places priority on organizations that help young people in communities across our footprint reach their full potential. We strongly believe that focusing on the health and well-being and education of young people will help build stable, growing and prosperous communities well into the s role in the community is about more than philanthropy, however. The Bank plays an important role in the economic fabric of each of our markets, and we constantly strive to facilitate economic growth and opportunity.